2018 Q4 Form 10-K Financial Statement

#000102207919000030 Filed on February 21, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2018 Q2
Revenue $1.839B $1.889B $1.919B
YoY Change -1.39% 1.78% 2.95%
Cost Of Revenue $1.215B $1.222B $1.243B
YoY Change 2.97% 2.69% 6.24%
Gross Profit $604.0M $667.0M $676.0M
YoY Change -9.99% 0.15% -2.59%
Gross Profit Margin 32.84% 35.31% 35.23%
Selling, General & Admin $329.0M $354.0M $351.0M
YoY Change -7.06% 1.72% -1.96%
% of Gross Profit 54.47% 53.07% 51.92%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $81.00M $77.00M $77.00M
YoY Change 10.96% 11.59% 16.67%
% of Gross Profit 13.41% 11.54% 11.39%
Operating Expenses $353.0M $354.0M $351.0M
YoY Change -5.61% 1.72% -1.96%
Operating Profit $251.0M $304.0M $305.0M
YoY Change -15.49% 2.01% -4.39%
Interest Expense -$43.00M $42.00M $43.00M
YoY Change 10.26% 7.69% 13.16%
% of Operating Profit -17.13% 13.82% 14.1%
Other Income/Expense, Net -$10.00M -$38.00M -$41.00M
YoY Change -350.0% -5.0% 51.85%
Pretax Income $167.0M $266.0M $264.0M
YoY Change -28.63% 3.1% -9.59%
Income Tax $39.00M $48.00M $42.00M
% Of Pretax Income 23.35% 18.05% 15.91%
Net Earnings $127.0M $213.0M $219.0M
YoY Change -50.0% 32.3% 13.47%
Net Earnings / Revenue 6.91% 11.28% 11.41%
Basic Earnings Per Share $0.93 $1.56 $1.60
Diluted Earnings Per Share $0.92 $1.53 $1.57
COMMON SHARES
Basic Shares Outstanding 136.1M shares 136.0M shares 136.0M shares
Diluted Shares Outstanding 139.0M shares 139.0M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $135.0M $263.0M $132.0M
YoY Change -1.46% -24.86% -57.96%
Cash & Equivalents $135.0M $263.0M $132.0M
Short-Term Investments
Other Short-Term Assets $144.0M $148.0M $137.0M
YoY Change -4.0% 10.45% -12.18%
Inventory $99.00M $95.00M $91.00M
Prepaid Expenses
Receivables $1.012B $1.097B $1.055B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.390B $1.603B $1.415B
YoY Change 6.43% 3.82% -5.67%
LONG-TERM ASSETS
Property, Plant & Equipment $1.288B $1.194B $1.168B
YoY Change 12.49% 8.84% 11.77%
Goodwill $6.563B $6.447B $6.414B
YoY Change 3.6% 4.59% 5.49%
Intangibles $1.207B $1.168B $1.166B
YoY Change 7.86% 13.51% 22.87%
Long-Term Investments $436.0M $456.0M $456.0M
YoY Change -5.63% -0.65% 1.11%
Other Assets $119.0M $118.0M $128.0M
YoY Change -12.5% -19.18% -12.33%
Total Long-Term Assets $9.613B $9.383B $9.332B
YoY Change 4.52% 5.49% 7.62%
TOTAL ASSETS
Total Short-Term Assets $1.390B $1.603B $1.415B
Total Long-Term Assets $9.613B $9.383B $9.332B
Total Assets $11.00B $10.99B $10.75B
YoY Change 4.76% 5.24% 5.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.021B $1.085B $957.0M
YoY Change 0.0% 3.63% 4.93%
Accrued Expenses $274.0M
YoY Change 11.38%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $464.0M $304.0M $305.0M
YoY Change 1188.89% 5980.0% 6000.0%
Total Short-Term Liabilities $1.485B $1.389B $1.262B
YoY Change 40.49% 32.03% 37.62%
LONG-TERM LIABILITIES
Long-Term Debt $3.429B $3.394B $3.408B
YoY Change -8.51% -9.71% -8.68%
Other Long-Term Liabilities $745.0M $761.0M $738.0M
YoY Change 12.37% 5.4% 4.09%
Total Long-Term Liabilities $4.174B $761.0M $738.0M
YoY Change -5.37% 5.4% 4.09%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.485B $1.389B $1.262B
Total Long-Term Liabilities $4.174B $761.0M $738.0M
Total Liabilities $5.659B $2.150B $2.000B
YoY Change 3.49% 21.2% 23.0%
SHAREHOLDERS EQUITY
Retained Earnings $7.602B $7.546B $7.401B
YoY Change 6.5% 8.64% 8.09%
Common Stock $2.669B $2.658B $2.635B
YoY Change 2.1% 2.74% 2.65%
Preferred Stock
YoY Change
Treasury Stock (at cost) $4.996B $4.829B $4.756B
YoY Change 4.45% 2.94% 2.13%
Treasury Stock Shares 82.00M shares 81.00M shares 81.00M shares
Shareholders Equity $5.216B $5.317B $5.223B
YoY Change
Total Liabilities & Shareholders Equity $11.00B $10.99B $10.75B
YoY Change 4.76% 5.24% 5.66%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2018 Q2
OPERATING ACTIVITIES
Net Income $127.0M $213.0M $219.0M
YoY Change -50.0% 32.3% 13.47%
Depreciation, Depletion And Amortization $81.00M $77.00M $77.00M
YoY Change 10.96% 11.59% 16.67%
Cash From Operating Activities $295.0M $402.0M $323.0M
YoY Change -8.67% 11.05% 9.86%
INVESTING ACTIVITIES
Capital Expenditures -$151.0M -$81.00M -$78.00M
YoY Change 84.15% 28.57% 20.0%
Acquisitions $54.00M $35.00M
YoY Change -71.12% -68.47%
Other Investing Activities -$195.0M -$44.00M -$48.00M
YoY Change -31.34% -76.09% -54.29%
Cash From Investing Activities -$346.0M -$125.0M -$126.0M
YoY Change -5.46% -49.39% -25.88%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -77.00M -146.0M -189.0M
YoY Change -54.71% 84.81% 6.78%
NET CHANGE
Cash From Operating Activities 295.0M 402.0M 323.0M
Cash From Investing Activities -346.0M -125.0M -126.0M
Cash From Financing Activities -77.00M -146.0M -189.0M
Net Change In Cash -128.0M 131.0M 8.000M
YoY Change -39.91% 263.89% -115.09%
FREE CASH FLOW
Cash From Operating Activities $295.0M $402.0M $323.0M
Capital Expenditures -$151.0M -$81.00M -$78.00M
Free Cash Flow $446.0M $483.0M $401.0M
YoY Change 10.12% 13.65% 11.7%

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CY2018 us-gaap Capital Lease Obligations Incurred
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CY2018Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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133000000 USD
CY2016Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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384000000 USD
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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137000000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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251000000 USD
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CY2018Q4 us-gaap Commitments And Contingencies
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CY2017Q1 us-gaap Common Stock Dividends Per Share Declared
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CY2006Q2 us-gaap Common Stock Shares Authorized
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CY2018 us-gaap Costs And Expenses
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1000000 USD
CY2018 us-gaap Current Foreign Tax Expense Benefit
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CY2018Q4 us-gaap Debt Instrument Fair Value
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34000000 USD
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CY2018 us-gaap Deferred Federal Income Tax Expense Benefit
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CY2017 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2018 us-gaap Deferred Foreign Income Tax Expense Benefit
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63000000 USD
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CY2018 us-gaap Depreciation Depletion And Amortization
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1.60
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1.16
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1.37
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1.15
CY2017Q4 us-gaap Earnings Per Share Diluted
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1.82
CY2017 us-gaap Earnings Per Share Diluted
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CY2018Q1 us-gaap Earnings Per Share Diluted
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1.27
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1.53
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0.92
CY2018 us-gaap Earnings Per Share Diluted
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5.29
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0.395
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CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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-0.001
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0.000
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CY2017 us-gaap Effective Income Tax Rate Reconciliation Prior Year Income Taxes
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CY2018 us-gaap Effective Income Tax Rate Reconciliation Prior Year Income Taxes
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CY2016 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2017 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2018 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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32000000 USD
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67000000 USD
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657000000 USD
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453000000 USD
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534000000 USD
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605000000 USD
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517000000 USD
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97000000 USD
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85000000 USD
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86000000 USD
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90000000 USD
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96000000 USD
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228000000 USD
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1100000000 USD
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1000000000 USD
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900000000 USD
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4000000 USD
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CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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1086000000 USD
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1030000000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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926000000 USD
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39000000 USD
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35000000 USD
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44000000 USD
CY2016 us-gaap Income Tax Expense Benefit
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429000000 USD
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241000000 USD
CY2018 us-gaap Income Tax Expense Benefit
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182000000 USD
CY2016 us-gaap Income Taxes Paid
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361000000 USD
CY2017 us-gaap Income Taxes Paid
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243000000 USD
CY2018 us-gaap Income Taxes Paid
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84000000 USD
CY2016 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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56000000 USD
CY2017 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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-8000000 USD
CY2018 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2016 us-gaap Increase Decrease In Accounts Receivable
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42000000 USD
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CY2018 us-gaap Increase Decrease In Accounts Receivable
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65000000 USD
CY2016 us-gaap Increase Decrease In Accrued Income Taxes Payable
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42000000 USD
CY2017 us-gaap Increase Decrease In Accrued Income Taxes Payable
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16000000 USD
CY2018 us-gaap Increase Decrease In Accrued Income Taxes Payable
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4000000 USD
CY2016 us-gaap Increase Decrease In Other Operating Capital Net
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-25000000 USD
CY2017 us-gaap Increase Decrease In Other Operating Capital Net
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26000000 USD
CY2018 us-gaap Increase Decrease In Other Operating Capital Net
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-31000000 USD
CY2016 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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P3Y
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0.024
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0.019
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0.019
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0.216
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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0.198
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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0.191
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0.014
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.021
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0.028
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10.35
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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15.98
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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18.14
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P5Y3M18D
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y2M12D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P5Y3M18D
CY2016 us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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2000000 shares
CY2017 us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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2000000 shares
CY2018 us-gaap Stock Issued During Period Shares Treasury Stock Reissued
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3000000 shares
CY2016 us-gaap Stock Issued During Period Value Share Based Compensation
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22000000 USD
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23000000 USD
CY2018 us-gaap Stock Issued During Period Value Share Based Compensation
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28000000 USD
CY2016 us-gaap Stock Issued During Period Value Stock Options Exercised
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73000000 USD
CY2017 us-gaap Stock Issued During Period Value Stock Options Exercised
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CY2018 us-gaap Stock Issued During Period Value Stock Options Exercised
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592000000 USD
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CY2018Q4 us-gaap Stockholders Equity
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5216000000 USD
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77000000 USD
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80000000 USD
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7000000 USD
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7000000 USD
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81000000 shares
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590000000 USD
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465000000 USD
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325000000 USD
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17000000 USD
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91000000 USD
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98000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
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115000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
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107000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
3000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
0 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
3000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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5000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
2000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
12000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
23000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
11000000 USD
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UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
13000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
14000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Expense
UnrecognizedTaxBenefitsInterestOnIncomeTaxesExpense
2000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Expense
UnrecognizedTaxBenefitsInterestOnIncomeTaxesExpense
1000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Expense
UnrecognizedTaxBenefitsInterestOnIncomeTaxesExpense
1000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
7000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
6000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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15000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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56000000 USD
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68000000 USD
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157000000 USD
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142000000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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140000000 shares
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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139000000 shares
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140000000 shares
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137000000 shares
CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
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136000000 shares
CY2018 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">DESCRIPTION OF BUSINESS</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;"></font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Background</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Quest Diagnostics Incorporated and its subsidiaries ("Quest Diagnostics" or the "Company") empower people to take action to improve health outcomes.&#160; The Company uses its extensive database of clinical lab results to derive diagnostic insights that reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management.&#160; The Company's diagnostic information services business ("DIS") provides information and insights based on the industry-leading menu of routine, non-routine and advanced clinical testing and anatomic pathology testing, and other diagnostic information services. The Company provides services to a broad range of customers, including patients, clinicians, hospitals, independent delivery networks ("IDNs"), health plans, employers and accountable care organizations ("ACOs"). The Company offers the broadest access in the United States to diagnostic information services through its nationwide network of laboratories, patient service centers and phlebotomists in physician offices and the Company's connectivity resources, including call centers and mobile paramedics, nurses and other health and wellness professionals. The Company is the world's leading provider of diagnostic information services. The Company provides interpretive consultation with one of the largest medical and scientific staffs in the industry and hundreds of M.D.s and Ph.D.s, many of whom are recognized leaders in their fields. The Company's Diagnostic Solutions ("DS") businesses are the leading provider of risk assessment services for the life insurance industry and offer healthcare organizations and clinicians robust information technology solutions.</font></div></div>
CY2018 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As a result of the adoption of the new accounting standard associated with clarifying presentation and classification in the statement of cash flows, certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. In addition, the Company adopted the new revenue recognition accounting standard on a full retrospective basis, which requires the Company to restate certain previously reported results. For further details regarding the impact of these new accounting standards, see </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">New Accounting Standards</font><font style="font-family:inherit;font-size:10pt;">. </font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States (&#8220;GAAP&#8221;) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div></div>

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